DigitalOcean announced the $350 million acquisition of Cloudways, a cloud hosting platform.
DigitalOcean offers a platform that aims to simplify cloud computing and allow developers to dedicate more time to developing software rather than being concerned with infrastructural issues. It’s committed to helping SMBs and startups utilize cloud infrastructure-as-service offerings.
Since 2014, both giants have been working together. Cloudways relies heavily on DigitalOcean’s architecture to power the majority of its customer experiences. With their combined efforts and resources, they can assist more than 124,000 customers.
After the acquisition, Cloudways will continue to remain an individual enterprise unit operating under the leadership of Aaqib Gadit, CEO and co-founder. Moreover, according to the company, existing customers will experience no changes in the services offered during the acquisition period.
Operations of Cloudways
Cloudways’s platform aims to simplify website hosting services for enterprises by unburdening management and providing stack scalability. It involves freeing the company from daily technical management of software like Magento and WordPress. According to W3Techs.com, WordPress is the most used CMS globally, with 43 percent of all websites created on the platform.
“Cloudways and DigitalOcean share values around simplicity, community, openness, and support that are vital attributes to how we differentiate in the marketplace”, DigitalOcean’s CEO stated. “Together, we will be focused on providing a simple, easy, intuitive, and trusted platform to better serve SMBs so they can build their businesses and pursue their dreams of entrepreneurship.”
Partnership deal details
DigitalOcean reported did well in the last quarter with annual run-rate revenue of roughly $544 million, up 28 percent from the previous year. The acquisition deal is anticipated to finalize in September, and payments will be made within 2.5 years. The terms also state that after the deal is made, Cloudways will contribute a sum of $13 million and $15 million in additional revenue this year.